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Kelvin Parsons, Opposition Critic for Mines and Energy and MHA for the
District of Burgeo-Lapoile, said today that the Industrial Employment
Benefits Agreement (IEBA) does indeed require the Voisey’s Bay Nickel
Company Limited (VBNC) to give first consideration to local companies and
the agreement states that contracts cannot be let outside the province if
there are qualified local firms who can complete the work on a cost
competitive basis.
"The legal opinions expressed to me as the former Minister of Justice are
contrary to what Minister Byrne said yesterday in his press conference. It
is not a case of the Opposition changing its mind on the deal, it is a case
of a government not being prepared to enforce the provisions of the
agreements," said Mr. Parsons.
Parsons was responding to comments made by Natural Resources Minister Ed
Byrne relating to a portion of a steel fabrication contract that will be let
outside of the province. VBNC claims that it cannot be completed in this
province within the appropriate time frame.
"Section 4.2.1 requires VBNC to identify on a timely and ongoing basis
supply opportunities that will be available for local companies. Apparently,
VBNC is now saying that local companies cannot get the work done on time.
The onus was on VBNC to advise local companies in a timely fashion that
these opportunities would be available. If local companies do not have
enough time to complete the work, the opportunity was not identified in a
timely fashion by VBNC.
"It is obvious that VBNC has breached the agreement by not providing
local companies with timely access to make a competitive bid. If this is the
case, I ask the minister what he will do to remedy the situation? Minister
Byrne says that this agreement has no teeth because it is a best efforts
clause. It is submitted, government can take several actions, up to and
including refusal to issue the mining lease, if VBNC does not live up to the
agreements. Instead of Minister Byrne focusing on the reasons why we cannot
secure local benefits, he should tell us what he intends to do to remedy the
lost opportunity to the province and the breach of the agreement. The
minister must immediately ensure that VBNC compensates the province for the
shortfalls in contract work that should have accrued to this province.
"We need a government who is going to stand up to VBNC and ensure that
the agreements are enforced. I hope this minister will recognize the
seriousness of the contract breach and will work diligently to ensure it is
remedied." |